SaaS Value Proposition: What It Is? And How To Build It?
July 18, 2022 Edwin Kooistra
A value proposition is a promise of value to be delivered. It is the primary reason why a customer would buy from you. A strong value proposition for SaaS must be convincing and relevant to the customer.
A value proposition is a statement that tells potential customers how your product or service will solve their problems or improve their situation. It’s usually concise, specific, and easy to understand.
Your unique value proposition should be clear and concise—preferably, no more than a few sentences. And it should be specific to the customer you’re targeting. In other words, don’t try to be everything to everyone.
The best value propositions are transparent, credible, and relevant to the customer. They’re also unique—they offer something that your competitors don’t.
Here’s an example of a strong value proposition
“Our software makes it easy for busy professionals to stay on top of their email without letting it take over their lives. It also integrates with your existing calendar and task management system to keep your entire work-life organized in one place.”
This value proposition is clear, credible, and relevant to the target customer. It’s also unique—there aren’t many email management tools that integrate with existing calendar and task management systems.
If you’re having trouble coming up with a strong product value proposition, start by thinking about the needs of your target customer. What problem are they trying to solve? What would make their life easier? Once you understand your customer’s needs, you can start brainstorming ways to solve those problems.
Once you have a few ideas, run them by some trusted friends or colleagues. If they can’t understand your value proposition, it’s probably too complicated. Simplify it until it’s straightforward to understand.
Remember, your value proposition is a work in progress. You’ll likely need to tweak and refine it as you learn more about your customers and your business grows. But if you start with a strong foundation, you’ll be in good shape.
A good and unique value proposition should be able to answer these three questions:
- What problem does this product or service solve?
- How does this product or service solve the problem better than other solutions?
- Why should the customer believe that this product or service can solve their problem
A value proposition is important because it tells your audience what they can expect to get from your product or service. It’s a way of differentiating your offering from others in the market and communicating the unique benefits that you can provide.
Your product value proposition should be easy for your target audience to understand. It should be based on a deep understanding of their needs and desires and positioned in a way that resonates with them.
A compelling value proposition can make the difference in whether or not someone decides to do business with you. So if you’re unsure how to craft one or if yours could use some improvement, it’s well worth taking the time to get it right.
There are a couple of things to remember when creating a value proposition for SaaS products:
- First, think about what your product offers that other similar products don’t. What unique features or benefits can you highlight?
- Secondly, consider your target audience and what they are looking for in a software solution. Keep their needs in mind as you craft your value proposition.
- Lastly, ensure your value proposition is clear and concise- it should be easy for someone to understand what your product does and why they should use it.
Following these tips should help create a compelling value proposition for your SaaS product.
An excellent example of a strong value proposition is when a software or product offers a free trial. This allows potential customers to try out the product or service before making a purchase, which can help increase sales.
Another example of a strong value proposition is offering a money-back guarantee. This shows customers that the company is confident in its product or service and is willing to stand behind it.
Finally, discounts or coupons can also be a strong value proposition, as they incentivize customers to make a purchase. By offering a discount, companies can attract new customers and increase sales.
Here are a few examples of tried-and-tested value propositions:
- “Get a free trial of our software to see how it can help your business.”
- “If you’re unsatisfied with our product, we’ll give you a full refund.”
- “Save 10% on your purchase when using this coupon code.”
- “Try our product for free for 30 days; no credit card required.”
3 Companies with the best value propositions
1 – Airbnb
An example of a great value proposition is Airbnb. They offer travelers a way to find unique accommodations and save money on travel expenses. With over two million listings in more than 190 countries, they have something for everyone. Their user-friendly platform makes it easy to find and book your perfect vacation rental.
2 – Apple (iPhone)
One of the most iconic examples is the original iPhone slogan, “This is only the beginning.” This clever tagline perfectly encapsulated the sense of excitement and possibility that came with owning an iPhone. It also hinted at the immense potential of the device, which was still in its early stages at that time.
Another great example is Apple’s more recent tagline for the iPhone 6s, “The only thing that’s changed is everything.” This powerful statement emphasized how much the new iPhone had improved upon its predecessor while also making it clear that Apple was continuing to push the envelope in terms of innovation.
3 – Slack
If you’re looking for some inspiration for your Slack value proposition, here are a few examples to get you started:
“Slack is the place where work happens. With real-time messaging, archiving, and search, it’s easy to see why.” – The Muse.
“Slack makes communication easy and efficient. With its searchable archive, users can easily find old conversations and shared files.” – Business Insider.
These are just a few examples of strong value propositions that companies can use to increase sales effectiveness. By offering a free trial, money-back guarantee, or discount, businesses can show customers that they are confident in their product or service and provide an incentive for purchase.